DJI suing US Department of Defense for being labeled ‘Chinese military company’
Drone manufacturer DJI is suing the United States Department of Defense for its decision to designate DJI as a ‘Chinese military company’.
According to the lawsuit, DJI was added to the Department of Defense’s list of Chinese military companies (CMC) in 2022.
For a period of 16 months, the drone producer tried to get its name removed from the list, arguing that DJI is “neither owned nor controlled by the Chinese military, and, as DoD acknowledges, sells only ‘consumer and commercial’—not military—drones”.
But despite all efforts, the Department of Defense refuses to change DJI’s designation. As a matter of fact, in January 2024 the Department redesignated DJI as a Chinese military company, without giving any explanation.
“As a result of DJI’s designation, which branded the company a national security threat, DJI has suffered ongoing financial and reputational harm, including lost business, and DJI employees have been stigmatized and harassed,” DJI says.
In September the company received a report, detailing the Department’s decision to label DJI as a Chinese military company. The drone manufacturer then came to the conclusion the only way forward was by taking the matter to court.
“DoD’s designation of DJI and its failure to remove DJI from the CMC List violates the law and DJI’s due-process rights,” the company argues in the lawsuit.
DJI states that the Department of Defense’s report on labeling DJI as a Chinese military company contains “a scattershot set of claims that are wholly inadequate to support DJI’s designation”.
Furthermore, DJI states that “among numerous deficiencies, the report applies the wrong legal standard, confuses individuals with common Chinese names, and relies on stale alleged facts and attenuated connections that fall far short of demonstrating that DJI is a CMC. The Report reveals that DJI was designated through a ‘deeply flawed’ designation process.”
Congress is considering a complete import ban of new DJI drones in the United States by suggesting they pose a national security risk, but the proposal is currently on ice.
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